Patel was responding to questions on US monetary policy and the changes likely to be made by the new Trump administration. The PAC also asked about the impact of demonetisation, under which 87% of India’s currency by value was invalidated to curb black money and counterfeit currency and encourage cashless transactions.

According to people aware of the committee’s deliberations on Friday, deputy RBI governor R Gandhi said the RBI is finding a way to make cashless transactions “cheaper and seamless” by introducing a single electronic platform that will support online banking, mobile phone and credit and debit card transactions.

Patel’s comment on monitoring the US monetary policy was in response to a question by Biju Janata Dal member Bhartruhari Mehtab.

The RBI’s Monetary Policy Committee, which sets interest rates, decided in December to keep them unchanged even after demonetisation.

Mehtab wanted to know how the RBI would deal with the changing global scenario, especially taking into account the post-demonetisation “slowdown in India’s manufacturing sector” that has lowered demand for bank loans.

The US Federal Reserve has set out on the path of increasing interest rates as the country’s economic prospects improve, triggering an outflow of capital from emerging markets, including India. Donald Trump, after taking over as the new president, is expected to revive domestic manufacturing and impose duties on US trade partners.

Patel said the mismatch in trade between developed countries and emerging nations “is a matter of concern.”

Bharatiya Janata Party (BJP) members on the panel objected when questions about who took the decision on demonetisation and on the subsequent difficulties caused by restrictions on withdrawing money from ATMs and banks were raised by PAC chairman KV Thomas and some members.

Kirit Somaiya and Nishikant Dubey of the BJP protested, saying, “RBI officials can’t be questioned as if they are criminals.” They wondered whether the committee would “summon and question the transport minister for road accidents.”

Only one of the three Congress members on the panel attended Friday’s deliberations. Patel is said to have deflected most questions related to demonetisation while stressing that some “temporary hardships” should be considered as the pangs “of this transition phase” towards a better economy.

When members asked how much old currency had been returned to the RBI after demonetisation, Patel parried the question. The PAC is scheduled to call the RBI brass for another round after the budget session of Parliament.

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